East Haven School Bd. Takes "Position" on Finkle $1.5M Fraud Bust

EAST HAVEN, CT - Since it came out on Friday that East Haven Board of Education member John Finkle has been charged with defrauding a company of $1.5 million there have been widespread calls for him to either resign or be removed from his town position.

East Haven Board of Education officials have issued statements to Patch to make it clear, they say, that it is not in its purview to take a stance on Finkle, who is also a former chairman of the school board, future's position on the board.

The Board of Education Sunday issued a statement on the matter saying:

"The current legal allegations in the media are completely unrelated to the East Haven Public School District as well as Mr. Finkle’s role as a Board of Education member. This is a matter for the US Criminal Justice system. Mr. Finkle’s position on the Board of Education is elected, and he cannot be removed. If Mr. Finkle chooses to resign it must be of his own cognizance and in accordance to his personal code of ethics."

Board of Education Chairwoman Michele DeLucia issued a personal statement, saying:

"I would like to remind everyone that Mr. Finkle is an elected public official. I don’t believe that myself, or any other public official should be the one to ask for his resignation, it should be the constituents who elected him."

DeLucia, acknowledging that many members of the public believe its the school board's responsibility to take action on Finkle said she asked the school board attorney to issue a clarifying statement.

That statement is here:

“As to issues of censure, Robert’s Rules sets forth procedures for the discipline of members. Given that board of education members are elected, boards of education do not have the right to remove a board member from office, irrespective of the nature of the member’s misconduct.

"Under Robert’s Rules, however, boards of education can reprimand a board member for misconduct, and such a reprimand is typically called a censure. However, a censure is just that, a reprimand, and it does not affect the rights of the member to continue to participate in the meeting, including the discussion.

"The appropriate procedure for a censure depends upon the nature of the misconduct. If the conduct occurs at a meeting (and thus the other members are witnesses), there is no need for further fact finding, and upon motion the Board can vote to censure a member for misconduct.

"Robert’s Rules states that the imposition of discipline, however, is an extraordinary act, and typically a motion to censure would only be made after the member is warned against continuing to engage in misconduct. By contrast, if the misconduct occurs outside of the meeting, Robert’s Rules contemplates that there be a trial at which the facts of the alleged misconduct would be established before discipline can be imposed.

"Given that a board member cannot be removed in any event, disciplinary action for conduct outside of a meeting would not typically be considered by a board of education in any event and further explanation may be unnecessary. "

Finkle has been indicted by a grand jury for his role in defrauding an Illinois-based company of more than $1.5 million, federal authorities announced Friday.

Also charged in the scheme are Steven C. Gold, 46, of Pleasant Prairie, Wisconsin and Kenneth J. Pedroli, 59, of Stony Brook, New York, officials said. The grand jury returned a seven-count indictment alleging all three men operated a scheme that defrauded an Illinois-based company of more than $1.5 million.

The indictment was returned on Feb. 13, and Finkle surrendered to law enforcement Friday. He entered a plea of not guilty to the charges, and was released on a $500,000 bond secured by his East Haven residence and a rental property in East Haven owned by his wife, federal authorities said. Gold and Pedroli will be arraigned later.

Finkle and Gold were employed by an Illinois-based supplier of electronic components, identified in the indictment as "Company A," federal officials said in a news release. Finkle was primarily employed in sales for the company and Gold operated the accounting and billing systems for the company, officials said. Pedroli purchased electronic components from Company A for a business he operated in Islandia, New York, officials said.

The indictment alleges that between February 2015 and December 2018, Finkle, Gold and Pedroli defrauded Company A through a scheme involving purchases that Pedroli made from the company, officials said in a news release.

Finkle also instructed Gold to apply fictitious credits to the invoices in order to reduce the amount of money Pedroli owed Company A, according to the news release. Finkle then wrote checks to Gold, which Gold deposited into his personal bank account, officials said.

It is alleged that Company A was defrauded of more than $1.5 million, and that Finkle profited more than $500,000, through this scheme, officials said.

The indictment charges each defendant with one count of conspiracy to commit mail and wire fraud. The indictment also charges Finkle with two counts of wire fraud, Gold with two counts of wire fraud, and Pedroli with two counts of mail fraud.

Repeated attempts to reach Finkle for comment over the weekend by Patch were unsuccesful.